SA’s medical schemes regulator has launched an inquiry into the Government Employees Medical Scheme , in the wake of media reports that it allegedly awarded a R600m contract to Afrocentric subsidiary Activo Health to provide its members with vitamins.
GEMS is the biggest restricted medical scheme in SA and covers civil servants and their dependents. It is heavily subsidised by the state, and had 1.92-million beneficiaries in 2020, according to the Council for Medical Schemes’ latest annual report. The CMS declined to answer Business Day’s questions. In a brief statement it said it had only become aware of the allegations after reading news reports, as it had received no complaints or allegations about the matter.
Section 43 of the Medical Schemes Act empowers CMS registrar Sipho Kabane to address inquiries to a medical scheme “in relation to any matter connected with the business or transaction of the scheme”. It is considered a softer option than launching a section 44 inspection, which requires a scheme to open its books, documents and financial records to scrutiny by the CMS.
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